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tv   Closing Bell With Maria Bartiromo  CNBC  November 7, 2013 4:00pm-5:01pm EST

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again, leader on the way down today. >> thank you very much. >> pleasure. >> there we go. going out on the day with a gain of 72% on twitter on its first day of trading. big day there. we got earnings from disney coming up. and ceo bob iger joining maria coming up on the second hour of the "closing bell." do not miss that. i'll see you tomorrow. and it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. what a busy day on the street today. the nasdaq really taking it on the chin. we have the dow, the s&p 500 and the nasdaq under selling pressure which makes the twitter story even that much better. first day of trading was so incredible. up 75% on the session. take a look at the market, though. dow down about 149 points here. things did accelerate into the sales side at the close tonight. down about 1% on the dow at
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15,597. volume also picking up at the end of the day. nasdaq gave up 75 points. technology has been rolling over lately. certainly the big momentum players at nasdaq, 3857. last trade there in the standard & poors index. bob pisani with all the lowdowns and the high notes here at the big board. over to you, bob. >> twitter did okay opening at $45.10. but it, too, sold off in the last hour, maria. i don't believe we made $45.10. let's put it up there. $45.90. closing below the initial price there, $45.10. the major indices, dow held up better than anything else. composite in the nasdaq and transports down 1.4%. breadth was terrible all day long. volume was on the heavy side. we may do 4 billion shares on the nyse. fairly broad selloff. look at some of the major
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sectors. airlines down. semiconductors were to the downside. retail stocks. consumer staples as well as financial. that's a broad decline. momentum stocks have had a tough week overall. so some of the major names here like tesla, yelp, zillow, facebook, linkedin all down. this is for the week. chinese internet stocks have also been down as well. perhaps not as much as some of the other ones earlier in the day. they were on the downside. biotech also on the weak side. one of the only sectors that have been up this week are some c of the consumer names. most of the names in the consumer space were down today but still up for the week. back to you. >> thank you so much. joining me to talk more about investing today, heather huks back with us from sunamerica funds. eric marshall from hodges capital management. jim low ell from adviser investments. the question of the day, first off, what happened at the end of the day? eric, what's your take on a
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market that certainly got tired by the end of the day and the selling really accelerated here? >> you know, the market has been near a 13-year high. that's created a lot of momentum in the market. we think it's probably been due for a little bit of a correction here to kind of reset sentiment. at the hodges funds we try not to get too caught up in the short term. we do think over the long run stocks still look attractive relative to valuations. >> okay. still attractive relative to valuations. i want to talk about that. because a lot of earnings are coming out. i want to get your take on earnings. let's right now, though, get to dominic chu. he's got the groupon numbers and priceline also out. a quick move over to dom chu. >> groupon shares were down about 5% in the regular session. they're tacking on another 4%, 5% in declines in the after hours. groupon's numbers come out. two cents per share in terms of earnings. adjusted earnings per share. that beats the average analyst estimate of a penny per share.
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however, and this is a big one, sales coming in light. $595 million in sales. the estimate was for $616 million. groupon also providing some guidance with regard to its full year 2013 operating income between $72 million and $92 million. they also make a statement about an acquisition. they're going to buy ticket monster, a south korean e-commerce company. they will pay $260 million. that's $100 million in cash and $160 million in groupon shares to finance the purchase. investors pushing shares down about 7%. worth noting, maria, the options market was pricing in a possible 14% move in those shares on the heels of earnings. groupon down in the after market, maria. back over to you. >> thank you so much, dom. out as well with earnings. sheila with those results. >> we are seeing priceline shares trade sharply lower in the after market. it's below that $1,000 level all due to the outlook. the company's outlook for the
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fourth quarter was disappointing. between 780 and 830 a share on the bottom line. revenues a conservative outlook. the third quarter, the quarter they reported on, it was a pretty solid quarter. profits beating 1730 a share. sales coming in higher. 2.27 billion versus expectations of 2.22 billion. gross bookings was higher than expected. 37.5% increase at $10.8 billion. again, the street right now is all focused on that outlook. the stock right now is sinking. in fact, 960 a share. well below that $1,000 share mark. we'd seen weakness in priceline stocks today. momentum for that stock certainly seems to be up. >> jim, what's your take on the earnings story so far? >> i think what we've seen is slightly slower, lower growth. that certainly matches with what we're seeing inside the economy. today's gdp number clearly reflective of the fact
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businesses and consumers are slowing down their spending a bit. of course, across the pond that surprise rate cut echoing the sense that this really is a recovery that is still tentative at best. nevertheless, it is still a recovery, not just domestically but globally. we think that generally bodes well longer term. i think today's selling looked more like just a way of pulling back. not the beginning of a receding tide. >> yeah. heather, you want to jump in? >> you need a breather right now. if investors, if we're going to head higher in stocks we're going to have to grapple with a bull whose characteristics are becoming inherently more risky than normal. that's why you're seeing a shift, you know, into some of these value plays right new. investors don't want to take on risk amid still we had gross domestic product at 2.8% today. there's still slower growth in the economy aside from homes. one strategy that seems to be back, may be back in favor, is that dogs of the dow strategy.
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it's pretty simple. that may come back in favor. >> yeah. what do you do in the environment? go ahead. >> well, i mean, i don't think that you have to do something like the magic trick of dogs of the dow. all you need to do is really focus on managers whose track records of picking stocks wisely and well and being diversified in terms of growth and value names delivers to the investors' bottom line over meaningful time periods. this is not a market that's shaping up to be a net sell. there are many opportunities. even inside technology, the kinds of names that are selling off the most are precisely the kinds of names that ought to be selling off the most as bob pisani pointed out, they are the momentum stocks. not the stocks whose fundament ams continue to look relatively well valued. especially relative to the broader market. >> i would argue that the momentum stocks are selling off. so i'm not saying it's some sort of magic trick. it just seems to be consensus in the retail space that has worked for the past few decades in terms of some sort of strategy
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without giving specific stock advice. >> yeah. what about specific names? eric, what do you want to be hiding in if, in fact, we are moving into a period where there is more volatility and the economy sort of weakens going into year end? are there any places to hide? >> we would agree that you should be cautious of the momentum areas of the market. but as bottoms up stock pickers, we think you can find opportunities in industrials, in transports. you can even find opportunities in pockets of technology, in consumer discretionary. we like things like commercial metals, which is benefiting from a recovery in the steel business. we also like retailer zales, undergoing a major turnaround. we think they could do well regardless of what happens with the macro conditions out there. and farrow technologies, a 3-d measurement company that is basically an industrial technology.
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it's not as exciting as twitter, but these are the type of names that if you look at them on an individual basis where you can find opportunities in this market. >> would you buy twitter here? >> i don't have an opinion. i'd have to do some valuation work on it after what it did today. but we -- we currently don't own it. it would be something that we would have to -- have to do some deep due diligence on before we did it. >> all right. we'll leave it there. thanks, everybody. appreciate your time tonight. we'll see you soon. much more ahead on this busy edition of the "closing bell." disney earnings due out any moment. we'll bring you the numbers the moment they hit the tape. bob iger, disney chairman and ceo will talk to me. we'll talk about the new mega marvel netflix deal. what's new with disney's "star wars" acquisition and expansion plans with china. lots to come with bob iger. stay with us. also ahead, where does twitter go now that it's locked in. a solid first day of trading.
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we have the charged up bull/bear debate on twitter coming up. noted technology investor dan niles will weigh in. he was right about when to get in and get out of facebook. he made a bundle on those trades. wait till you hear his call on twitter. you're watching the "closing bell" on cnbc, first in business worldwide. vo: two years of grad school. 20 years with the company. thousands of presentations. and one hard earned partnership. it took a lot of work to get this far.
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well dom back. we have breaking news on back to sheila. >> it does seem like there's a shuffle at the top of the management chain at they're splitting the role of chairman and ceo. jeffrey boyd, currently the company's chairman and ceo will be pushed up to chairman role. taking over the role of president and ceo listen darren houston. the 47-year-old is the ceo of a subsidiary of these will take place january 1st. jeffrey boyd kick up to chairman role at new role of president and ceo going to darren houston, president of the a division of priceline. we are still down in the after hours after the company reported a disappointing fourth quarter outlook. though we are picking up a little bit of steam. not quite as low as we were before. again, priceline shares down after that disappointing fourth
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quarter report. third quarter results, the results they reported on, were quite good. in fact, bookings up 37.5%. back to you. >> thanks so much. looks like twitter has already exceeded expectations after pricing last night at $26 a share. the stock shot up the moment it began trading today. take a look. closing today at $44.90. this is the after hours quote at $44.35. this puts twitter with a valuation higher than the likes of netflix. is it worth it? andrew staltman is with me, securities lawyer and shareholder advocate. he doesn't think so. amish shaw is founder and managing partner at sierra mai adventures. amish, today you bought 1,000 shares of twitter. is that right? >> that is right. >> what was the price? >> you know what? i put it in -- i didn't really care what i got the price at because i'm so bullish on the stock. in fact, i believe when i looked this morning i think i got
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$45.10 when i looked at it. the way i look at it, maria, i got a newborn coming in january. i'm looking at this as a long term. i'm looking at this to fund his college education. i did the same with my daughter two years ago when facebook went public. i'm bullish on that. i think that'll pay for her education as well. but i love twitter. >> andrew, what about you? you don't like twitter at all. why? >> no, i don't. i feel like we're in the movie "groundhog day." look at the financials. they're absolutely horrible. you have a company that's losing money in the past. they're losing money now. there's no prospects of really making money in the next couple years. they have a nondiversified earnings stream in terms of the money they are making. the growth is slowing in america. any big competitor could get into this industry and do the same exact thing twitter is doing. we saw the same exact play with groupon recently. with facebook that got absolutely hammered before it came back. it's a horrible stock. i wouldn't touch it with a ten foot pole. >> oh, my god, he's counting on his college education for his kids here!
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>> yikes. i hope you're sending them to community college. >> let's get serious. this is not groupon. this is it sha-- i mean, people twitter right now, if you look, lady gaga tweets. people listen. this is the new e.f. hutten. twitter is like e.f. hutten. whenever someone important tweets, everybody listens. carl icahn tweets about apple. the stock moves up. >> the best possible case scenario is baked into the price. the price at $45 assumes everything goes right. we don't know how the company is going to make money. they haven't shared it with us. >> andrew, they made $422 million a share. they're on pace for over 600. >> how much money are they making? >> we got to jump. i love this debate. we've got disney numbers out. we've got to get to them. appreciate it. tha thanks very much. we'll watch disney shares on the move on the heels of fourth quarter earnings and revenue coming out. $11.57 billion in revenue for the fourth quarter. julia boorstin with the numbers. >> disney reported with better
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earnings and revenue than expected. as you mentioned, $11.57 billion in revenue. better than the 11$11.4 billionn revenue projected and up from the year ago period. earnings per share 77 cents. that's one penny better than expected. up from 68 cents in the year ago period. looking at some of these different divisions here of disney, this is the first quarter that the interactive division has become profitable. that, of course, on the success of their new video game platform called infinity. we're also seeing some increases in the parks. the studio is showing growth. studio entertainment growth. consumer products, growth. also, you know, the media networks revenue is up as well. just going to continue to dig through these numbers here. there is an issue of deferred revenue which is why the media networks operating income is down. otherwise parks and reports, operating income up 15% and 17%
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for the quarter and the full fiscal year. this is their fiscal fourth quarter. back over to you. >> thank you so much. by the way, disney chairman and ceo bob iger will talk with me in a first on cnbc interview coming up. we'll run through these numbers, get the lowdown on disney's newly inked deal with netflix which brings more super heroes flying across your favorite screen. we'll find out how the force has been with disney since buying the "star wars" franchise from george lucas. disney's bob iger is next. stay with us. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade-proud to be ranked "best overall client experience."
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welcome back. disney earnings are out, reported just a few moments ago. we'll talk to the man in charge. chairman and ceo bob iger joins us now. >> good to see you. >> we have some news. i want to talk about the quarter and get your take on where things stand. i understand you have some news on "star wars." you have the release date for the next film. can you tell us about it? >> that's correct. we posted on not all that long ago that the release date is going to be december 18th, 2015. and we're extremely excited about that. obviously, one of the most important movies that we've got coming out as a company in the next few year. we think it's a great date. christmas time. same date, by the way, "avatar" was released in 2009. >> so, bob, are any of the original cast members coming back? harrison ford? mark hammel? carrie fisher?
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>> we're only making one announcement today. that's the date, maria. sorry to disappoint you. >> but are you talking to these guys? people want to know if they're going to see those characters again. >> in due time, i'm sure we will release a lot more detail about the film. >> all right. just giving us a little teaser there. let's talk about business last three months, bob. how would you characterize the quarter? >> good, solid quarter across the board. all of our businesses. i feel really good about how parks and resorts and consumer products performed. and it's great to have a quarter where we actually had profitability in our interactive division, thanks to our new game infinity. and we had a good solid quarter for media networks as well led by cable. we feel really good about the quarter that ended our fiscal 2013, which ended with record revenues and record profits. a very good, solid quarter. >> the park and recreation business, the consumer products, i guess give us a little bit of
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a window into the consumer. would you say that that is telling in terms of what's happening with retail and the consumer right now? or is this just a disney story? >> well, i think it's certainly a disney story. because we've had a lot of new product in the marketplace, particularly parks and resorts. that's really working well, what we did in california with cars land and the new fantasy land in orlando. that obviously helps a lot. so our product is being welcomed by our public and is in demand. i think we've seen from an economy perspective, you know, some modest improvement over the last year. but nothing to be overly exuberant about. >> what can you tell us about advertising going into year end? what are you seeing from the corporate standpoint in terms of cash outlays and advertising plans? >> well, advertising represents only around 20% of our revenue. but we ended up with a decent quarter. what we're seeing in scatter pricing at our -- at abc,
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largely, and at espn is pricing that's above what was sold to the up front nicely. i'd say it's a marketplace that's okay. espn actually has seen some strength recently that we feel good about. it's not a fantastic marketplace. again, steady improvement over the year. >> it sounds about right with what we're hearing throughout corporate america, for sure. let's talk about this big deal with netflix, bob. you're developing four mini series based on marvel characters. it's going to begin in 2015. it's so interesting to see these deals being done with netflix. because at one point on the one end, you know, so many of your colleagues were looking at netflix as the enemy. and now you're doing deals with netflix because it's another avenue of distribution. how important is this deal to disney? >> well, we were the first major studio to actually do a movie output deal with netflix, which was announced, i think, about a year ago. that was a real breakthrough deal. we view netflix as a very viable
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platform, a great platform for us to put our product on both movie product and television product. they're also paying us nicely for the great product that we offer them and their customers. i think it actually ends up being a win/win deal for both of us. what this deal is, is it's four original marvel series. and one mini series. that will be delivered starting in 2016. so it's original product. not product that's off another platform or another network. that's breakthrough unto itself. it shows obviously the strength of our intellectual property, particularly marvel. it's just one more example of how we expected to monetize that acquisition which has turned out to be great for us in so many fronts. licensing and consumer products. movies. we've got another great marvel movie out this weekend called "thor." we're expanding into television and theme parks where we announced not all that long ago we're developing an "iron man"
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attraction for hong kong. this is a great acquisition. this netflix deal, i think, is just another example of the strength of high quality, branded, intellectual property. in particular, the strength of marvel. and, of course, the emergence of netflix as a very, very viable distribution platform. >> yeah. i want to ask you about "thor." i see the poster behind you, actually. i'll get to that in a moment. one more piece on netflix. because it is breakthrough that it's original content. do you worry that the pricing for netflix could actually impact pricing overall for content in terms of bringing prices down? you view netflix as another distribution vehicle. and i get that. but putting original content on there certainly strengthens netflix. >> well, it does strengthen netflix. it strengthens disney, too. our view on this is that they were going to find ways to create original content with or without us. in other words, in fact, they
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already have. "house of cards" is a great example of that where they went off and they commissioned, essentially, a series to be created just for them. and that was only going to continue. they obviously have the financial wherewithal to support original production. and so figuring that they were going to be in the business of competing with us anyway with original product, we thought, well, why not join them rather than just compete with them. and use them as a means to sell product that actually was not going to be product that we'd put our own -- on our own networks. we already have a strong marvel series on abc called "shield." we've got another one that's in twomt. we have marvel product on disney xd. we didn't really see the need to necessarily create more marvel product for our own networks. and thought this was a great opportunity for us to monetize some great characters. it's kind of been interesting all day listening to the money that's being raised by twitter in its ipo for 140 characters.
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here we are raising a substantial amount of money for our thousands and thousands of characters. i guess that's maybe another way to look at it. >> yeah. no, no, you're right. by the way, at the end of the day this is a real big positive for consumers. they're getting this original content at a good price. what did you think of the twitter ipo? i mean, what's changed in your world over the last few years? mobility, right, bob? i mean, is that the sort of, you know, innovation of the day and twitter going public today and raising all that money is sort of emblematic of that? >> it is. i don't have comments about all the specifics. but i'd say the most dramatic change that i've seen in media, in the 40 years that i've been in media, has been the unbelievable growth overnight of mobile and social. mobile in particular. we're obviously very focused on
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this because mobile flplatforms are another great way for us to move our content as well to consumers around the world. we're seeing huge growth for espn, abc, disney, all the products that they create on mobile platforms. it's not only another way to monetize, but it's just another way to engage more with consumers. and i think what happened with twitter is, you know, another example of the unbelievable change that we've seen in media to basically mobile. of course, with the inclusion of social. you can't ignore that dynamic. >> right. for sure. >> i like it, by the way. i like it a lot. as a media executive, i think this is a great, great development. >> and, again, it's about the consumer winning. being able to view what they want to view anywhere they are on whatever twice. let's talk about "thor." you've got the poster behind you. "thor: the dark world" opened in about 70% of international marketplace last weekend.
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the fim m will debut tonight with screenings ahead of the official opening tomorrow. will play in 3,800 theaters. why is this such an important character and franchise? what are you expecting? >> this is "thor" 2. we had "thor" 1 a couple years ago. thor is a member of the avengers franchise. "avengers" was one of the highest grossing film of all time. actually disney's highest grossing film. a very, very important character. one that will play a role going forward. there will be an "avengers" 2. opening in 2015. all signs point to a great opening this weekend. it will be followed by "captain america" 2 in april. this is part of the ongoing marvel plan to take its most popular characters and make them
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more available in more ways to consumers and to actually create popularity for characters that were not as popular before. fantastic, fantastic treasure-trove of intellectual property. >> it really is. 2015, looking like a very big year for disney. before we go, bob, shareholders out there have enjoyed a terrific performance under your leadership. what can you tell them about the allocation dividends, buybacks, what we might expect going into the new year? >> well, we have pretty much been blending our capital allocation between investment in our businesses, organic investment, acquisitions led by pixar and marvel and lucas films. share buybacks. we announced last quarter that we're going to buy back between $6 billion and $8 billion of our stock in our fiscal '13. dividends where we've increased our dividend nicely over the last few years.
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and i would expect that you'll consider to see a similar approach, although we've said before, we haven't identified acquisitions the size of lucas, marvel and pixar that you can expect us to make in the near term. but certainly continuing to invest in our businesses. we're building shanghai disneyland which is going to open the end of 2015. great example of that. continuing work on our theme parks, expanding them. then the share buyback that was mentioned earlier. we'll make a decision about our dividend at our board meeting coming up in early december. >> fantastic. bob, great to have you on the program. thanks so much. >> you're welcome. thank you, maria. >> see you soon. bob iger joining us, chairman and ceo of disney. twitter's ipo making a big splash on wall street today. up next, noted investor dan niles. he'll give me his take. dan was right about when to get in and get out of facebook. find out if he thinks investing in twitter would be a big hit or a blunder. that's next. also ahead, lenovo north
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welcome back. downer on the day for stocks. no closing high on the dow. over to you, dom. >> let's start it off with priceline which fell below the $1,000 level in after hours trading after losing 3% during the regular session. the company disappointed investors with its outlook. but it came off its lows after announcing it promoted darren houston to be the new ceo replacing jeff boyd who'll remain chairman. they're splitting chairman and ceo roles. groupon agreed to by living social's south korean unit ticket monster. gap is trading higher after reporting its october comparable store sales were up 4%. it also gave third quarter earnings guidance above consensus estimates. gap shares in the green.
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monster beverage also losing some ground after reporting third quarter earnings and revenue that really fell short of wall street forecasts. and, of course, we've got to end with twitter. which had a very successful, to say the very least, debut on wall street. opening 73% higher than its $26 ipo price. but it did close below its opening trade price of $45.10, mar maria. >> thanks so much, dom. noted technology investor dan anytimniles was right on th about facebook when it ipo'd. when the stock fell below $20 dan swooped in. he bought the stock below $20. then he sold the stock recently at a huge profit, above $50. what does he think now about the next social media stock to hit the scene with great fanfare? that's twitter, of course. joining us on the telephone right now is alpha one capital partners chief investment officer dan niles. good to have you on the program. thanks for joining us. >> thanks for having me on. >> you've been so savvy about
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technology over the years. what is your take on twitter right now? would you buy the stock here? >> no. we, in fact, went ahead and shorted the stock at about $45.60, above the initial opening price. twitter, it's interesting. because this offering is actually completely set up differently than facebook was. so there are a lot of nuances here that has made us not like the company at this valuation level. >> once again, it seems like you got it at the high. and shorted it at the high. what is it? what are the metrics that you're looking at that make you cautious here, dan? >> sure. that's a great question. so if you -- just comparing this to facebook and linkedin, probably the two best comparables, if you look at where twitter is trading today, at the closing price, the stock is valued at about 29.4 times sales. if you look at both facebook and linkedin on that graphic you can see on a market cap to sales basis both companies are at
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about 11.5 -- you know, 11.5 times on average. you're valuing this company at more than 2 1/2 times the level you're valuing facebook and linkedin. the second piece of that, you're valuing them at this level despite the fact that twitter is barely profitable. both linkedin and facebook have margins and 25% to 50%. in addition to that, twitter is -- their users, those are decelerating. the most recent quarter they were 39% year over wreyear. when you look at this across a bunch of different metrics, investing is risk/reward. there's no question twitter is an absolutely great, fabulous company and it's going to be around for a long time. the question is, at 29 times sales, when you can buy facebook and linkedin at about closer to 11, is it going to be a great stock? and i have some real issues with that. >> so how do you think this
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plays out in terms of the stock performance here? do you think that we're going to see some -- some negativity? do you think the stock goes down from here? what's your take? >> well, i think if you kind of go back and look at this streak, i'm a big believer that history is a good guide, if you look at when some of these companies, once they went public, you know, after the first day move up in pandora, three months later that was down. facebook, same thing. it was down. groupon was down. linkedin was down. yelp was down. so in all these cases, each of the widely varying companies, linkedin may be the most relevant of the bunch. it almost doubled on its opening day from where it was offered. you know, the stock closed down about 60% over the next three months from those levels. and we all know what happened with facebook. so i think from here, you've really got to have really outsized expectations. even for me when i look at this, even if i assume revenue doubles but going back to back graphics,
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you look at the calendar '15 numbers and you assume they do calendar '15 estimates in calendar' 14. you've still got the company trading at about 22 times revenue. which is still double where facebook and linkedin are. maybe that's okay. but i think facebook went off as a better company in terms of at the same size that twitter is currently, they were growing much faster. their user growth was going up much more rapidly. i just have a hard time believing that twitter is worth this much relative to a facebook and where it's at or linkedin. >> it's really a valuation story. dan, always great to have you. thanks very much for weighing in. see you soon. >> thanks,maria. take care. >> dan anytimes. the head of lenovo's u.s. division will react to the smartphone smackdown. a layout how the worldest largest pc maker will make its mark in mobility and keep the computer business online.
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how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ okay. welcome back. lenovo is the number one pc maker in the world. that did not impress the canadian government, though, who turned around the china-based company when it turned them away when it wanted to bid for canada's blackberry because it was a chinese company. despite that rejection, the company is reporting all-time high revenue and a record profit of $220 million in the second
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quarter. at lenovo, joining me at the nyse in an exclusive interview is jay parker, president of lenovo north america. good to see you. >> happy to be here. >> first, characterize the quarter. >> okay. >> what did you see? i want to talk about the new tablet which we're going to show in a moment. first how are things going? >> it's going great. we had a great quarter like you said. about $10 billion in revenue. biggest quarter ever. we're setting records in revenue, profit, market share. and we're bringing out hot new products. so we couldn't be more excited at this point. >> you know, i'm glad you brought one of your products. we'll talk about it shortly. because a lot of people want to know, you know, what's going on with tablets. we're looking at market share here with lenovo at 4.8% of the market for the tablet market. >> yep. >> what happened with blackberry? the canadian government would not even entertain an offer to acquire blackberry from lenovo because it's a chinese company. >> well, that's -- that's a rumor. and any of our involvement with blackberry has been. so i can't really comment on that. i can tell you that we're really
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excited about our mobility business. a lot of people in this market don't know that we're actually in a dead heat to be the number three smartphone provider in the world. we're growing quicker than any other device maker. so we're really excited about that organic smartphone business. >> that's an organic story, sure. >> yeah. >> becoming number three. but maybe you could have been number two with blackberry. i mean, what -- >> we think we can be number one with or without. like i said, we're growing faster than anyone right now. we're continuing to invest. we serve markets that represent over half the world's population. and we've said in the next 12 to 24 months we'll start to enter into mature markets like western europe and the u.s. >> i'm just wondering, does it bother you, is it a concern that the government of a country can say you can't acquire one of our companies because it's a canadian company? >> i honestly don't even know that to be the case. >> you still say this is a rumor? >> absolutely. but think -- lenovo just for
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your edification, we're a global fortune 500 company. our top executives represent seven nationalities out of the top ten. it's a global company. the idea of it being a chinese company is, i think, old news. >> which is why i'm asking you about this. >> right. >> but you obviously were not part of these talks. and don't want to comment on the canadians saying no to lenovo. >> that's a pretty good read, maria. >> let's talk about the tablet and what you brought here today. >> okay. great. >> why is this the way to go? how come not smaller? how do you gauge what consumers want in a market that is getting noisier and more crowded every day? >> yeah. it's certainly a tough market. but we -- just to be clear, we have multiple sizes and form factors. now, this is a new one that we launched for the holiday. it's calmed the yoga tablet. >> yoga. can you put that on? >> sure. >> got it.
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okay. good. >> it's got a few advantages. first of all, it comes in eight and ten inches. but you might see that it has a little stand here. so you can put it down for -- >> yeah. then the battery is right here. >> the battery is right here. 18 hours of battery life. then you flip it down. you hold it like a book, like a magazine rolled up. it's just a simple little innovation that makes a difference in the device. there hasn't been much innovation in the tablet form factor since its introduction. >> i love it. what does this go for in the store? >> eight inch is $249. there's a ten inch version for $299. a very reasonable price point for what you get. that's what you're starting to see in the tablet market is the mainstream and entry level price points are really carrying the volume now. this fits right in that sweet spot. >> what kind of reception are you getting so far from consumers? not necessarily just for this product, this is a new product. >> yeah. >> but overall. i mean, we're going into the fourth quarter here after a government shutdown with worries that the consumer is not exactly
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so robust right now? >> right. our business is very strong. i can tell you when it comes to tablets and smartphones, as we talked about, that now makes up in this past quarter 15% of our revenue. that's double what it was the year before. and it's growing much faster than our pc business. so we're excited about it. and our other tablet portfolio is selling very well here in this market. >> you had record revenue. you had record profits. obviously a great quarter. >> that's right. >> for lenovo. you're continuing to gain market share. yoga is the name. >> yeah. >> where does that come from? >> well, it comes from the flexibility of it. and the different modes that you can put it in. >> like down dog. >> yeah. we've kind of pioneered this concept we call multimode computing. it actually started with the yoga pc we announced last holiday. the number one selling device of its kind in the u.s. we extended the concept to the tablet. >> i guess it'll be another technology christmas. >> that's right. i hope so.
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thanks, maria. >> thank you so much. jay parker joining us here. president of lenovo north america. how will the market close out the week after a big selloff today? wall street's money pros will give you a leg up next on friday's action. that includes the october jobs report. stay with us.
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>> our next guests are a here to tell me what we should be watching for right now. and matthew from rockland trust. good to see you guys. >> thanks for having me, maria. i think the market is going to focus on two key numbers. the unemployment number for september where i expect an increase and the consumer confidence number out of michigan at 955, which i expect a lower number. both of the numbers were greatly impacted by the government shut down. oddly enough, it may push the tapering talk further down the road which may give support to bonds and stock prices. monday is veteran's day, a bond market holiday. >> all right. we will leave it there.
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>> we think the u.s. payroll and employment rors really will do the sentiment. the government shut down is going to affect the different reports differently. if the numbers are a little weak and it really is not too bad we think the markets are going to react positively. as the market digests the event, the market sells off on the news. >> thanks very soon. merry christmas for retailers. we're starting to see some signs that will answer that question. next. stay with us. americans take care of business.
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>> and finally tonight, my observation on what has become another bier if kated retail environment very much a mixed bag at best. one of the most surprising stories of the day has been j.c. penney. they actually reported gains of
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nine tenths of a percent. the stock has had a pretty good couple of weeks. as you can see there, now at $8.13 a share. elsewhere there is evidence of further retail weakness. and that is holiday shopping. an increase of about 3%. while that is better than the lowered expectations. >> the question to ask is who isn't opening on thanksgiving day instead of waiting until the traditional black friday which will likely continue through the critical holiday season. and coming off of poor
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back-to-school sales, the expectations were already low going into the end of the year following the government shut down so it's no surprise that the fed is not looking to taper with these projections. allow the fed to begin stepping away from the unprecedented stimulus program. whether that keeps on going even as fundamentals weaken is the open question. we will be watching the retail space as we end the year and go into that very important season here on closing bell. take a look at the day. we had a tough day for the major averages. the dough was down 152 points as selling accelerated in the final few minutes of trading. volume picked up almost a billion shares alone. nasdaq was hard hit, almost 2% lower on nasdaq. 3857 last trade on nasdaq and
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the s&p 500 finished down at 1747. twitter's ipo going on without a hitch. social messaging giant surged better than 70% from the $26 a share pricing of the ipo last night, up to $44.90 at the end of the day. thanks so much for being with us. thanks for watching. i hope you will follow me on twitter. stay with cnbc. fast money begins right now. >> this is fast money, america's post market show. here is tonight's line-up. momentum gets whacked. the high fliers took a beating. we will tell you if you will be buying a dip or getting out while you still can. down in flames. another fire for tesla sends the stock down 8%.


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